Revenues of $47.9 million for the fourth quarter and $183.3 million
for the year;

Record cash collections in the fourth quarter of $53.2 million,
compared with previous record of $46.1 million in the third quarter of
2011;

Earnings per diluted share of $0.83 for the fourth quarter and $2.71
for the year;

Cash provided by operations of $14.3 million for the fourth quarter
and $32.2 million for the year;

Quarterly dividend of $0.51 per share, an increase of $0.05 per share;
and

Formation of TruBridge, LLC.

Computer Programs and Systems, Inc. (NASDAQ: CPSI), a leading provider
of healthcare information solutions, today announced results for the
fourth quarter and year ended December 31, 2012.

The Company also announced that its Board of Directors has approved an
increase in the regular quarterly cash dividend of $0.05 to $0.51
(fifty-one cents) per share, payable on February 22, 2013, to
stockholders of record as of the close of business on February 7, 2013.

Total revenues for the fourth quarter ended December 31, 2012, were
$47.9 million, compared with total revenues of $42.2 million for the
prior-year fourth quarter. Net income for the quarter ended December 31,
2012, increased 39% to $9.1 million, or $0.83 per diluted share,
compared with $6.6 million, or $0.59 per diluted share, for the quarter
ended December 31, 2011. Cash provided by operations for the fourth
quarter of 2012 was $14.3 million, compared with $9.3 million for the
prior-year fourth quarter. Cash collections for the fourth quarter ended
December 31, 2012, were $53.2 million, compared with cash collections of
$44.3 million for the prior-year fourth quarter.

During the fourth quarter of 2012, the Company recorded a tax benefit of
$1.6 million for tax deductions not previously recognized for tax years
2005 through 2010 related to increased IRC Section 199 Domestic
Production Activities Deductions.

Total revenues for the year ended December 31, 2012, were $183.3
million, compared with total revenues of $173.5 million for the prior
year. Net income for the year ended December 31, 2012, increased 16% to
$30.0 million, or $2.71 per diluted share, compared with $25.8 million,
or $2.34 per diluted share, for the year ended December 31, 2011. Cash
provided by operations for 2012 was $32.2 million, compared with
$33.5 million for the prior year. Cash collections for 2012 were $184.0
million, compared with cash collections of $179.3 million for the prior
year.

During 2012, the Company installed systems under contracts for which a
portion of the consideration will be received and revenue recognized in
subsequent periods upon hospitals successfully achieving Meaningful Use
designation. The total accumulated unrecognized revenue related to such
contracts as of December 31, 2012, was approximately $7.1 million.

For 2013, the Company anticipates total revenues of $194.0 million to
$206.0 million and net income of approximately $31.0 million to $33.0
million, or $2.80 to $2.98 per diluted share. CPSI’s 12-month backlog as
of December 31, 2012, was $149.3 million, consisting of $42.4 million in
non-recurring system purchases and $106.9 million in recurring payments
for support, Business Management Services and SAAS contracts. The
backlog amounts exclude amounts to be recognized in subsequent periods
upon hospitals successfully achieving Meaningful Use designation.

Earlier this week, the Company announced the formation of TruBridge,
LLC, a wholly owned subsidiary of CPSI. TruBridge will provide business
services, consulting services and managed information technology
services targeted specifically at rural and community healthcare
organizations. The new subsidiary will provide services to a broad
healthcare market, regardless of the organization’s IT vendor. For more
information, visit www.trubridge.net.

A listen-only simulcast and replay of CPSI’s fourth quarter and year-end
2012 conference call will be available on-line at www.cpsinet.com
and www.earnings.com
on February 1, 2013, beginning at 9:00 a.m. Eastern Time.

About Computer Programs and Systems, Inc.

CPSI is a leading provider of healthcare information solutions for
community hospitals with over 650 client hospitals in 45 states and the
District of Columbia. Founded in 1979, the Company is a single-source
vendor providing comprehensive software and hardware products,
complemented by complete installation services and extensive support.
Its fully integrated, enterprise-wide system automates clinical and
financial data management in each of the primary functional areas of a
hospital. CPSI’s wholly owned subsidiary, TruBridge, focuses exclusively
on providing business office, consulting and managed IT services to
rural and community healthcare organizations, regardless of their IT
vendor. CPSI’s staff of over 1,400 technical, healthcare, medical and
business professionals provides system implementation and continuing
support services as part of a comprehensive program designed to respond
to clients’ information needs in a constantly changing healthcare
environment. For more information, visit www.cpsinet.com
or www.trubridge.net.

This press release contains forward-looking statements within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995.These forward-looking statements
can be identified generally by the use of forward-looking terminology
and words such as “expects,” “anticipates,” “estimates,” “believes,”
“predicts,” “intends,” “plans,” “potential,” “may,” “continue,”
“should,” “will” and words of comparable meaning.Without
limiting the generality of the preceding statement, all statements in
this press release relating to estimated and projected earnings,
margins, costs, expenditures, cash flows, growth rates and future
financial results are forward-looking statements, including with respect
to CPSI’s expectations for growing TruBridge, LLC (“TruBridge”), a
wholly owned subsidiary of CPSI, and successfully providing and
expanding its service offerings.We caution investors that any
such forward-looking statements are only predictions and are not
guarantees of future performance.Certain risks, uncertainties
and other factors may cause actual results to differ materially from
those projected in the forward-looking statements.Such factors
may include: the effectiveness of the strategy of moving CPSI’s business
management services to TruBridge; overall business and economic
conditions affecting the healthcare industry; the potential effects of
the federal healthcare reform legislation enacted in 2010, and
implementing regulations, on the businesses of our hospital customers;
the funding uncertainties associated with and potential expenditures
required by the American Recovery and Reinvestment Act of 2009 in
connection with the adoption of electronic health records; saturation of
our target market and hospital consolidations; changes in customer
purchasing priorities, capital expenditures and demand for information
technology systems; competition with companies that have greater
financial, technical and marketing resources than we have; failure to
develop new technology and products in response to market demands;
fluctuations in quarterly financial performance due to, among other
factors, timing of customer installations; failure of our products to
function properly resulting in claims for medical losses; government
regulation of our products and customers, including changes in
healthcare policy affecting Medicare and Medicaid reimbursement rates;
government regulation of the healthcare and health insurance industries;
changes in accounting principles generally accepted in the United
States; breaches of security and viruses in our systems resulting in
customer claims against us and harm to our reputation; potential
intellectual property claims against us; general economic conditions,
including changes in the financial markets that may affect the
availability and cost of credit to us or our customers; interruptions in
our power supply and/or telecommunications capabilities and other risk
factors described from time to time in our public releases and reports
filed with the Securities and Exchange Commission, including, but not
limited to, our most recent Annual Report on Form 10-K.We also
caution investors that the forward-looking information described herein
represents our outlook only as of this date, and we undertake no
obligation to update or revise any forward-looking statements to reflect
events or developments after the date of this press release.

COMPUTER PROGRAMS AND SYSTEMS, INC.

Unaudited Condensed Statements of Operations

(in thousands, except per share data)

Three Months Ended

December 31,

Year Ended

December 31,

2012

2011

2012

2011

Sales revenues:

System sales

$

20,089

$

15,445

$

72,553

$

70,644

Support and maintenance

18,321

17,994

73,026

67,557

Business management services

9,505

8,773

37,730

35,275

Total sales revenues

47,915

42,212

183,309

173,476

Cost of sales:

System sales

12,912

11,107

49,019

47,603

Support and maintenance

8,036

7,489

31,119

27,239

Business management services

5,727

4,974

22,510

19,223

Total cost of sales

26,675

23,570

102,648

94,065

Gross profit

21,240

18,642

80,661

79,411

Operating expenses:

Sales and marketing

3,630

3,041

14,290

13,413

General and administrative

5,248

5,074

25,094

24,703

Total operating expenses

8,878

8,115

39,384

38,116

Operating income

12,362

10,527

41,277

41,295

Other income, net

110

175

721

667

Income before taxes

12,472

10,702

41,998

41,962

Provision for income taxes

3,333

4,147

12,025

16,129

Net income

$

9,139

$

6,555

$

29,973

$

25,833

Basic earnings per share

$

0.83

$

0.59

$

2.71

$

2.34

Diluted earnings per share

$

0.83

$

0.59

$

2.71

$

2.34

Weighted average shares outstanding:

Basic

11,074

11,063

11,066

11,034

Diluted

11,074

11,063

11,066

11,034

COMPUTER PROGRAMS AND SYSTEMS, INC.

Condensed Balance Sheets

(in thousands)

Dec. 31,

2012

Dec. 31,

2011

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

8,913

$

6,664

Investments

10,675

16,487

Accounts receivable, net of allowance for doubtful accounts of
$1,124 and $1,276, respectively

The following table summarizes cash flow and
free cash flow for the Company:

Three Months EndedDecember 31,

Year Ended

December 31,

2012

2011

2012

2011

Cash Flow Information

Net cash provided by operating activities

$

14,252

$

9,341

$

32,207

$

33,540

Net cash provided by (used in) investing activities

4,952

(9,867

)

1,482

(14,025

)

Net cash used in financing activities

(16,122

)

(3,969

)

(31,440

)

(15,790

)

Free Cash Flow

Net cash provided by operating activities

$

14,252

$

9,341

$

32,207

$

33,540

Less: Purchases of capital assets

(2,039

)

(9,840

)

(4,363

)

(10,847

)

Free cash flow

$

12,213

$

(499

)

$

27,844

$

22,693

Free cash flow is a non-GAAP financial measure which CPSI defines
as net cash provided by operating activities less purchases of
capital assets. The most directly comparable GAAP financial
measure is net cash provided by operating activities. The Company
believes free cash flow is a useful measure of performance and
uses this measure as an indication of the financial resources of
the Company and its ability to generate cash.

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